“The world’s telecommunications market with its national fiefdoms, loose market deregulation, over-bearing government regulation and occasional fierce competition lends itself to M&A as a means of growing, and sometimes sustaining revenues, by accessing new markets.
Whilst telcos still have cash they are better positioned to buy in foreign markets as their own markets may see M&A as anti-competition.”
Tony Poulos on BillingViews.
Interesting article by Tony Poulos above. He indicates that big telcos are looking beyond their own borders for additional sources of non-organic revenues whilst avoiding anti-competition rules in their local jurisdictions.
Naturally one of the cited benefits of M&A (Mergers and Acquisitions) is the consolidated operations allows for major cost reductions. ICT is one of the first factors identified. OSS / BSS is a big part of telco ICT consolidation so it’s assumed that the two big OSS / BSS suites would roll into one and the rest discarded. Sounds easy enough in theory.
In practice it’s a long way from being easy. Without even considering the technological challenges, there are complexities in cultures, processes, service offerings, reorganisations, terminologies, etc to navigate around.
The most common approach to a merger is for the dominant organisation to keep their OSS / BSS suite and support staff, migrate the other organisation’s data / services across and then power down the other organisation’s OSS / BSS. It’s common to power down the support staff of the other organisation shortly thereafter too.
I wonder instead whether the merger is actually an opportunity to start afresh without the accumulated baggage of two complex, misaligned OSS/BSS suites and associated people, process, technology and services?
This alternate approach would see both suites being run autonomously and separately, whilst preparing a simplified, joint future OSS / BSS state (processes, topologies, applications, requirements, etc). Once the future state is identified, approved and commissioned, then both organisations would migrate their data and services to the future state.Read the Passionate About OSS Blog for more or Subscribe to the Passionate About OSS Blog by Email